FAANG Stocks Flying High Since Market Bottom

After the market hit bottom on December 24, stocks have clearly rebounded sharply. And FAANG stocks have been no exception.

What are FAANG Stocks?

If you’re not familiar with the FAANG acronym, it’s a variation of the term, FANG. FANG was coined by CNBC’s Jim Cramer. It originally stood for a handful of the largest and best-performing tech stocks: FB (Facebook), AMZN (Amazon), NFLX (Netflix), and GOOG (Alphabet). AAPL (Apple) was later added on (it’s unclear why it was excluded in the first place) to coin the new acronym, FAANG.

How Have FAANGs Been Doing?

Since the overall market carved out a bottom in late December, FAANG stocks have all been positive. But some have done much better than others. For example, while AAPL has stagnated a bit at around +6% (less than overall market performance), NFLX was the clear leader at more than a 50% gain since December 24. This performance is nothing short of phenomenal.

Netflix Earnings

Netflix just released its earnings report on Thursday after the market close, and its Q4 results were mixed. While earnings-per-share (EPS) beat expectations, revenue fell short and the stock price dipped in after-hours trading. Missed revenue could pose a problem going forward, as the company just increased subscriber pricing two days ago. While higher fees per subscriber will certainly add to revenue, Netflix runs the risk of subscribers and prospects balking at the price hike. (See also: Netflix (NFLX) Price Increase Spurs Stock Rally.)

Are the FAANGs Back?

Despite this after-hours blip, FAANG performance overall has generally been exceptionally strong in the past four weeks, eclipsing tech stocks as a whole as well as the broader U.S. market. But are the FAANGs really back? That will depend in large part on whether Apple can make a meaningful comeback.

IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.

Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.

A veteran global macro trader/analyst, Bart focuses on major market moves in currencies, commodities, fixed income, and global equity indexes. Bart stresses inter-market correlations and dynamics while keeping a close eye on risk. He has published countless market analysis pieces and has been a guest expert for a variety of major financial media. Contact Bart